MIDAS SHARE TIPS UPDATE: Literacy backer books rewards
One in five children in this country have reading difficulties and many have never owned a book. Afraid of the written word, they leave school with poor literacy, and their lives are often destroyed as a result.
Paul Pindar and his son Richard are on a mission to change this grim trend while making money for investors.
The duo founded Literacy Capital in 2017, a company that buys small businesses, helps them improve them and sells them again a few years later, ideally at a large profit.
The value of these companies is assessed every year and 0.9 percent of that money is given to reading charities, most notably Bookmark Reading, which helps children who have difficulty reading and writing.
Literacy floated on the stock market in 2021 and was recommended by Midas at £3.89 a year later. The price has since risen 20 percent to £4.68 and the outlook is bright.
Mission: One in five children in this country has reading difficulties and many have never owned a book
The Pindars have proven their mettle as shrewd dealmakers and are determined to increase the value of their company from £295m to £1bn in the coming years, donating millions of pounds to charity.
The company invests in companies across industries, from emergency tire repairs to Wi-Fi broadband for the Department of Defense and college campuses.
Today there are seventeen companies in the stable, most of which were acquired from their founders. Literacy appeals on two levels. First, the Pindars have proven that they can promote growth. Second, literacy is not just about making money, but also about doing good.
Last year alone the group sold two companies, dog food specialist Butternut and recruiter Kernel Global. In both cases, the acquiring companies paid about 50 percent more than the companies on Literacy's books were valued at. More of the same is expected in 2024, with buyers already circling some of the group's companies.
Midas judgment: Literacy Capital shares have risen sharply over the past year and the company has now donated almost £8 million to reading charities. At £4.68, the shares should continue to reward hard-nosed investors and philanthropists alike. Those who want to take it a step further can even volunteer at Bookmark and help children learn to read.
Traded on: Main market ticker: BOOK Contact: literacycapital.com or 020 3960 0280